16th Oct 2020 18:11
Circle Property PLC - UK-focused regional office assets investor, developer and manager - Collects 75% rent for quarter to December 2020, which is says reflects its lack of retail exposure as well as covenant strength. Including agreed monthly payments, September rent collection stands at 80% of rent due. March and June rent collection has improved since last repot, now 93% and 89% respectively and Circle Property is in "constructive dialogue with all tenants". Expects rent collection numbers will increase further. Investment and development portfolio independently valued at GBP137.9 million as at September 30 versus GBP139.5 million March 31. Marginal drop in valuation results from "earmarked strategic investment of approximately GBP1.6 million to refurbish two assets rather than negative market movement." Net asset value per share drops 1% in six month period to GBP2.83 per share September end from GBP2.85 per share March 31. Financing facility in place with RBS, HSBC, for GBP100 million. September 30 cash on balance GBP4.5 million with aggregate immediate liquidity of GBP7.2 million at disposal.
Circle Property says: "As previously announced, with all of the challenges arising from Covid-19, and the likely implications for the economy, the board considers it prudent to reduce gearing from the current level. We have a number of assets that have benefited from our active management approach and where we have added considerable value following redevelopment, lease restructures or renewals. We believe these investments, with secure tenants and long-term income attached, will be highly sought after as investors look to secure income in an uncertain and low yielding macroeconomic environment."
Current stock price: 166.50 pence
Year-to-date change: down 19%
By Anna Farley; [email protected]
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